Fair Trade Commission: RT-Mart Fined NT$3.5 Million for Publishing False Information About Toilet Paper Price Increases ⟦4 In its 1375th Commissioners' Meeting on the 14th (yesterday), the Fair Trade Commission resolved that RT-Mart Distribution Co., Ltd. (hereinafter referred to as RT-Mart) engaged in promotional conduct by publishing false information about toilet paper price increases, misleading consumers and causing a sudden imbalance between supply and demand of toilet paper products, constituting deceptive conduct sufficient to affect trading order, in violation of Article 25 of the Fair Trade Act, and imposed a fine of NT$3.5 million.

At its 1375th commissioners' meeting yesterday (the 14th), the Fair Trade Commission resolved that RT-Mart Distribution Co., Ltd. (hereinafter referred to as RT-Mart) engaged in a promotional practice by releasing false information about toilet paper price increases, misleading the consuming public and triggering a sudden imbalance between supply and demand for toilet paper products. This constituted deceptive conduct sufficient to affect trading order, in violation of Article 25 of the Fair Trade Act, and a fine of NT$3.5 million was imposed.

The Fair Trade Commission had previously opened an investigation on its own initiative into suspected concerted action by toilet paper manufacturers in proposed price adjustments. During the investigation, it was found that, in order to promote the company's toilet paper promotion period from February 23 to February 27, RT-Mart sent a message on the morning of February 23 via public relations mobile phone and email stating "Toilet paper confirmed to surge 30% - hypermarket sales instantly soar 5-fold." The content was entirely drafted by RT-Mart and proactively sent to major media outlets.

The Fair Trade Commission pointed out that, from the perspectives of hypermarket revenue and number of stores, RT-Mart is clearly a major player among domestic hypermarkets. Looking at the news release issued by the company on February 23 as a whole, the headline was "Toilet paper confirmed to surge 30%," further mentioning the possible timing and magnitude of the increase, followed by the company's toilet paper promotion program from the same day to the 27th, and claiming it would continue to maintain its low-price strategy for toilet paper. Viewed in context, RT-Mart's intention is clear: it first used unverified information about confirmed price increases by major upstream manufacturers, then explained its promotion program, attempting to seize the opportunity to boost consumers' favor for its promotion program.

The Fair Trade Commission stated that the news release said "name-brand" toilet paper, "the increase isn't just 1% or 3%, but as high as between 10% and 30%," and "the price adjustment will come as early as mid-March, and must rise before April at the latest." However, none of the upstream toilet paper manufacturers had completed price negotiations with RT-Mart, and the claimed confirmed timing and range of the price increases had no basis whatsoever. RT-Mart was unable from the outset to provide evidence substantiating a confirmed 30% increase. After comparing the evidence submitted by RT-Mart and upstream toilet paper suppliers, it is abundantly clear that the company engaged in promotional conduct using false information to mislead consumers.

The Fair Trade Commission concluded by stating that RT-Mart used misleading toilet paper price increase information to conduct false promotions, causing an abnormal sudden imbalance between supply and demand in the toilet paper market, constituting deceptive conduct sufficient to affect trading order, in violation of Article 25 of the Fair Trade Act, and was therefore penalized. As for whether the proposed price adjustments by toilet paper manufacturers involve illegal concerted action, the Fair Trade Commission is continuing its investigation.